Sagar Doshi of Nuvama Recommends Affle India, Amara Raja, and Bharti Airtel
Stock Market Overview: Nifty 50 and Sensex Start Flat Amid Market Optimism
Affle India : The Indian stock market opened on a cautious note on Wednesday, March 26, 2025, as both the Nifty 50 and Sensex remained nearly flat. After rallying for the past week, the indices showed signs of consolidation as investors adjusted to the recent gains.
- Nifty 50 opened at 23,700.95, up 32.30 points or 0.14%.
- Sensex started at 78,021.45, showing stability.
Despite concerns over potential disruptions on April 2 due to trade tariffs, the market sentiment remains “cautiously optimistic.” Analysts believe that investors have already priced in the risks, and any outcome less severe than expected could be a positive trigger.
Market Sentiment and Nifty 50 Outlook
Sagar Doshi, Senior Vice President – Research, Nuvama Professional Clients Group, shared his insights on the market:
- Nifty 50 has surged by nearly 1,000 points in the past week.
- A short-term pause in momentum is evident as the index hit a 10-week high but closed below the previous day’s high.
- A potential move towards 24,000+ is on the horizon, with 200-DMA resistance acting as a key level.
- Volatility is expected to remain high, with a possible 400-500 point swing in the next few sessions due to the monthly derivatives expiry.
- Support remains at 23,000, suggesting a strong downside cushion.
Bank Nifty Outlook
- Bank Nifty has rallied 9% in the past two weeks, reaching a three-month high.
- The index recently met its intermediate target of 51,650, but momentum suggests a potential move towards 52,500.
- Short-term support is placed below 51,000, but the outperformance compared to Nifty 50 is expected to continue.
Top Stock Picks by Sagar Doshi for March 26, 2025
Sagar Doshi has recommended three stocks for investors looking to capitalize on market momentum: Affle India, Amara Raja Energy & Mobility, and Bharti Airtel.
1. Affle (India) Ltd
- Last Closing Price (LCP): ₹1,575.55
- Stop Loss (SL): ₹1,530
- Target Price (TGT): ₹1,740
Technical Outlook:
Affle India has broken a three-month trendline resistance, aligning with a breakout above its 200-DMA at ₹1,540. This move signals a potential rally of 10-12%, with levels unseen since early 2025.
2. Amara Raja Energy & Mobility Ltd
- Last Closing Price (LCP): ₹1,055.40
- Stop Loss (SL): ₹1,011
- Target Price (TGT): ₹1,220
Technical Outlook:
Amara Raja has undergone a 50% correction from its previous highs, similar to the 2021-2022 pullback. The stock has now confirmed a 9-month trendline breakout, setting up for a 12-15% upside.
3. Bharti Airtel Ltd
- Last Closing Price (LCP): ₹1,730.50
- Stop Loss (SL): ₹1,690
- Target Price (TGT): ₹1,825
Technical Outlook:
Bharti Airtel has broken out of a six-month cup and handle pattern, indicating that its consolidation phase is over. The stock has been outperforming the broader market for the past two quarters and is likely to continue its upward momentum towards a fresh all-time high.
Key Financial Ratios of Recommended Stocks
To help investors assess the fundamental strength of these picks, here are some key financial metrics:
| Stock Name | P/E Ratio | P/B Ratio | ROE (%) | Debt/Equity Ratio | 52-Week High (₹) | 52-Week Low (₹) |
|---|---|---|---|---|---|---|
| Affle India | 45.6 | 6.8 | 13.2 | 0.10 | 1,750 | 1,280 |
| Amara Raja | 19.5 | 2.9 | 15.5 | 0.22 | 1,280 | 860 |
| Bharti Airtel | 23.8 | 5.2 | 16.8 | 1.09 | 1,850 | 1,320 |
Investor Takeaway
- Affle India is poised for a strong breakout, supported by 200-DMA confirmation.
- Amara Raja has resumed its uptrend after a significant correction, making it attractive for medium-term investors.
- Bharti Airtel is a solid bet in the telecom sector, with a bullish pattern breakout indicating further upside.
With market volatility expected to remain high, traders should closely monitor support levels and maintain stop losses to protect capital.
Frequently Asked Questions (FAQs)
1. Why is the market showing high volatility today?
The market is experiencing volatility due to derivative expiry, as well as uncertainty regarding April 2 trade tariffs. Foreign institutional investors (FIIs) have also been actively trading index options, contributing to large price swings.
2. What is the expected movement for Nifty 50 in the coming days?
Nifty 50 may move towards 24,000+, but a wild 400-500 point swing is expected in the short term. Strong support remains at 23,000.
3. Why did Sagar Doshi recommend Affle India?
Affle India recently broke out of a 3-month trendline and 200-DMA resistance, suggesting a potential 10-12% rally in the near term.
4. Is Amara Raja a good investment after its correction?
Yes, Amara Raja has corrected 50% from its highs, similar to past market cycles, and has now broken a 9-month trendline, making it a buy candidate with a 12-15% upside.
5. What makes Bharti Airtel a strong pick?
Bharti Airtel has given a cup and handle breakout, signaling a continuation of its bullish trend. The stock has been outperforming the market for two quarters and is positioned to reach new highs.
6. What are the key financial metrics to consider before investing?
Investors should review the P/E ratio, P/B ratio, return on equity (ROE), and debt/equity ratio. Bharti Airtel has the highest debt among the three picks, but its strong growth potential offsets this risk.
Final Thoughts
The stock market remains resilient despite uncertainties, and traders should capitalize on technical breakouts while managing risks effectively. With strong momentum in Nifty 50 and Bank Nifty, these stock picks by Sagar Doshi could present lucrative opportunities in the coming sessions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.